DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/mw4grn/competitive) has announced the addition of the "Competitive Dynamics in Brazilian Wealth Management" report to their offering.
Wealth creation, GDP growth, and initial public offerings of Brazilian firms are driving the Brazilian wealth management industry and interest is high from both domestic players looking to enhance their position in the market, and foreign players looking to diversify. Here Datamonitor Financial takes an in-depth look at the competitive scene in Brazilian wealth management.
- The integrated private banking units of universal banks hold considerable market share in the domestic wealth management market. Wealth management firms are more numerous, but it is the integrated private banks that lead the market. Independent brokerage firms offering direct and online trading to the retail market are also plentiful.
- There has been little M&A activity in the Brazilian wealth management market in the last 18 months. Foreign firms have encountered strong competition from local firms and red tape has stalled activity. Organic growth in Brazil has also been muted as São Paulo and Rio de Janeiro remain the key centers for wealth management.
- Participants in the Brazilian wealth management industry operate one of three different business models: an integrated private bank, an asset manager, or a brokerage. Competitors profiled include: Bradesco Private Bank, Lerosa Investimentos, Santander Private Banking and Verus Gestão de Patrimônio.
Key Topics Covered:
- The Brazilian domestic wealth market is served by a range of players but universal banks hold the majority of the market - The majority of high net worth client assets are held in integrated private banks
- Wealth management firms dedicated solely to asset management are numerous
- Independent brokerage firms offering direct and online trading to the retail market are plentiful
- Minimum investment thresholds vary across the business models - Brokerages target the mass affluent population with $250,000-500,000 in minimum investments
- Wealth management firms are not subject to a client minimum investment capacity classification but global standards apply
- Private banks target clients with over BRL3m ($1.5m) in investable assets
- Multi-family offices target those with $10m in investable assets
- The offshore market is led by universal banks but regional firms are entering the market
- Key factors shaping the competitive environment in Brazil - The regulatory environment in Brazil favors no business model over another
- Different business models require different certification from Brazilian regulatory bodies
- The majority of Brazilian wealth managers derive income from assets under management and pay their relationship managers a bonus based on profitability
- Inward M&A activity has not been as buoyant as some expected - Foreign firms have encountered strong competition from local firms and red tape has stalled activity
- Some foreign firms have retreated or remained offshore to serve Brazilian clients
- Organic growth in Brazil has also been muted as São Paulo and Rio de Janeiro remain the key centers for wealth management
- The integrated private banks dominate the Brazilian wealth management market
- Key competitors in depth - Bradesco Private Bank
- Lerosa Investimentos
- Santander Private Banking
- Verus Gestão de Patrimônio
For more information visit http://www.researchandmarkets.com/research/mw4grn/competitive